Real Estate Reality

Choosing a Lender

Well here you are, thinking about buying a home. Cruising the internet, looking at pictures of homes, descriptions of bungalows nestling into the scenic wonders of the landscape, you find a home intriguing enough to shoot off an email and set an appointment to see this home of your dreams.  You meet an unknown agent at the home and by golly this home is it. The kitchen is the one that allows you to throw the parties of your dreams, the bathroom is luxurious, and there are more closets than you know what to do with.

Then the agent wakes you up with one quick question. Are you pre-approved? (cue scary music)

How do you choose a lender? Do you use the tried and true Mom and Dad uses them, or a list provided by your realtor, maybe you choose the shiniest, spiniest, largest banner ad you find. No matter how you find a lender you should ask these few questions.

1.       Does the lender answer the phone, emails, texts ,etc? If you leave a message do they respond within a reasonable amount of time?  If the answer is no, why are you wasting your time and effort?

2.       Does the lender have a variety of products or are they pushing one loan only. One loan does not fit all. Having many loan products (i.e. FHA, VA, 204k, etc.) will allow you to find the one that is right for you.

3.       Does the lender explain the total cost or just talk about the low monthly payment? Do they explain APR as opposed interest rate? Is the Good Faith Estimate clear and all their charges fully explained? If the lender is hesitant to explain the product RUN AWAY.

4.       Do you feel comfortable with the lender? A lender should communicate, answer questions fully, and make you feel knowledgeable about the process.

As in most instances, communication is the key. Ask questions and do not be afraid to ask more than one lender.